Galaxy Digital has reported a narrowed loss for the first quarter, driven by a strategic shift in its business mix and enhanced financial management, despite a decline in cryptocurrency prices. The company posted a loss of $216 million, or 49 cents per share, surpassing analyst estimates of 59 cents per share. Revenue decreased to $10.2 billion from $12.9 billion in the previous year's quarter.
Galaxy Digital is increasingly focusing on the rising demand for data centers and has initiated delivery of its first data hall at the Helios campus in Texas to CoreWeave, marking the commencement of revenue under a long-term lease tied to artificial intelligence workloads. The company noted that its adjusted gross profit remained relatively stable due to the growth of recurring fee revenue and transaction income, which provides greater resilience in challenging market conditions. Additionally, disciplined expense management during the quarter contributed to a narrowed adjusted EBITDA loss, underscoring the company's emphasis on operating efficiency.
The Helios facility is expected to provide 133 megawatts of computing power by the end of the second quarter, with the company securing approval for an additional 830 megawatts of power, bringing the total capacity to over 1.6 gigawatts. Following the announcement, GLXY shares experienced a second consecutive day of decline, recently falling by 0.84% to $24.84.